For insurance brokers, this surety bond is designed by government agencies to protect the general public against predatory sales practices and other unethical behaviors.

1. Insurance
Broker
Bond
PRESENTED BY:

2. What is an Insurance
Broker Bond?
Many states require insurance brokers to obtain a surety bond to
protect customers from insurance brokers who may use their personal
information in an unethical manner.
An insurance broker should be someone that an individual can trust
with their private information.
Having this bond goes one more step towards boosting a customer’s
confidence in working with your agency.

3. 3 Parties Involved:
In every surety bond, there are three parties: the
principal, the obligee, and the surety.
PRINCIPAL
The individual that is required to purchase the surety bond.
OBLIGEE
The agency that requires a surety bond to be obtained.
SURETY
The underwriter of the surety bond, guaranteeing that the
principal will meet the terms of the bond.

4. How does it work?
A customer may be able to file a claim against the bond if
they feel that the insurance broker has done something
wrong.
This could include inflating quotes, convincing customers
to purchase products they do not need, and asking
customers to misrepresent themselves or their finances
on insurance forms.
The surety company will investigate the claim, and if it is
deemed valid, payment will be made to the complainant
against the bond. The insurance broker will be responsible
for repaying the amount paid out of the bond.

5. What will you pay for this bond?
If your state requires you to purchase an insurance broker bond, how much you pay for your premium will depend on
the amount of the bond you need.
In most cases, you will be expected to pay just 1% of the bond amount. For example, if you need a bond of $20,000 then
you will need to pay just $200 for coverage.

6. 800-333-7800
www.suretybondauthority.com
https://suretybondauthority.com/insurance-broker-bond/
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